Investors can be divided into amateur investors and professional investors. However, investors in my country often do not understand the essential difference between the two. Many people act as both amateur investors and professional investors in practice. the role of the author. As everyone knows, doing so carries huge risks.
Find your own market positioning
The confusion among investors about their own positioning is related to the misleading of securities books in society. The author did not distinguish between these two types of readers who are essentially different but also related. They often mixed the knowledge suitable for two different types of investors together in writing. Therefore, amateur investors were confused in their investment operations. The concepts and methods are similar to those of professional investors.
Amateur investors who do not understand the market positioning that suits them, do not understand the investment strategies and methods that suit them, and whose level is very different from that of professional investors, bear huge investment risks. The key issue is that amateur investors should maximize their strengths and avoid weaknesses according to their own specific circumstances, and clearly define market positioning investment strategies and investment methods that are suitable for them.
The best method for amateur investors
1. Master the basic knowledge about investment. As an amateur investor, you must first master the basic knowledge about investment, such as: some basic knowledge of economics, basic knowledge required for financial analysis and technical analysis
etc. In addition, master a set of stock selection methods that suit you, understand the financial and profitability of investment stocks, the industrial status of the stock, and evaluate the current market prosperity, capital and other investment environments, and finally determine whether it is worth it
You have to invest now.
2. Invest in areas you are familiar with. It is best to make enterprise-style securities investments with the perspective and mentality of investing in industry. The safer approach is: first, invest in high-quality stocks in industries that you are familiar with; second, invest through
Through observation, we can judge the operation and management status of a listed company, sell the stocks of listed companies with poor performance, buy the stocks of listed companies in good condition, and share the benefits brought by the development of the enterprise.
3. Pay attention to the trends of corporate managers and the investment industry. Investors should pay attention to whether the managers of the companies you invest in are performing their duties and how the management is. At the same time, although you cannot be said to be an expert, you must have an understanding of the ins and outs of the industry you invest in, so that you can Only by grasping the trends of the industry can you share the benefits of its development as a small shareholder.
The best method for professional investors
1. Have a strong desire to win. The securities market is like a boxing arena for fierce fighting, which is different from the boxing arena as a competitive sport. This is where investors of all levels and levels are in the same field
If you can only surpass yourself but fail to reach a very high level, you may lose. Therefore, as a professional investor, if you want to gain Success must first have a strong motivation to become a top player. It doesn't matter if you can't become a top player in the end, but this strong motivation is indispensable.
2. Learn to integrate. A solid foundation is another factor for professional investors to succeed. It is necessary to have a comprehensive and in-depth mastery of all kinds of knowledge required for securities investment, and to be able to integrate them. If the basics are not solid, you will definitely not be able to go far.
Be sure to understand the knowledge of each genre. After understanding it, in most cases it seems that they are actually telling the same truth from different angles and using different language systems. For example, what is the difference between internal boxing and external boxing? There seems to be a big difference when you first get started, but after you really grasp its essence, you will see that there is not much difference. At the highest level, the two are essentially the same. Only at this time, after having this feeling, can people feel that they can use boxing with ease and use its basic principles and essence. Otherwise, it is often just gestures, imitations, and fancy tricks.
3. Have a systematic investment method. Successful investment requires a scientific and systematic investment method. Successful investment not only requires mastering the basic laws of investment and having solid basic knowledge, which is actually the way scientists look at problems, but as a practitioner, on the basis of understanding the basic laws, you must also pay attention to Specific investment requires a systematic approach. The specific investment method is not a magic weapon to defeat the enemy, a secret weapon that can conquer the world, nor is it a panacea. Because the biggest enemy of investment is yourself and the weakness of human nature, the important role of a systematic investment method is that it can help you discover, grasp, and control the negative impact of human weakness on investment. It is much better to have something objective and systematic than nothing. Because when people are controlled by their own human weaknesses, they often cannot help themselves. Investors can still be rational when thinking about problems, but they are often irrational when taking specific actions.
For example, when you need to make investment decisions and decide when to buy and when to sell, people are very easily affected by emotions. What you originally thought is useless and is controlled by emotions. Investment methods developed objectively and systematically can help you overcome this hazard quite effectively. When you are about to do this, it tells you: No, you have to do that.
At least it can warn you to think about whether it is the right thing to do instead of doing it impulsively.
A scientific investment system is a complete system of investment rules, including a clear and specific series of decision-making rules for determining entry points, exit points, re-entry points, and re-exit points. You should make your investment system clear and organized instead of letting it just stay in a subconscious state. You should constantly modify your investment system as the statistical characteristics of market data continue to change.
4. Have good psychological quality. Controlling one's own human weaknesses, fighting unremittingly against them, and honing one's excellent psychological qualities in practice are the keys to investment success. Like any other industry, when one wants to reach a higher level of investment, he will find that the opponent is himself. Once you have truly reached the level of top players, everyone has the same professional skills, and then it becomes a game of psychology and character.
The biggest trap or the biggest risk in investment is that the investment itself will tempt you to explode at any time and show the weaknesses of human nature, including greed, fear, herd mentality, selfishness, face, unstable emotions, etc. wait. It will make you make mistakes in judgment through
your human weaknesses, which is very critical. Therefore, investment is ultimately a matter of being a human being. "Greed" and "fear" are the most harmful human weaknesses in investment that need to be overcome
. "Greed" goes without saying that most people have it. The greed for money makes people make mistakes one after another when investing, and this is most obvious in the commodity futures market. Another manifestation is the desire
to get rich overnight. This kind of psychology causes people to frequently buy and sell and fall into the trap of excessive trading; "fear" is manifested in fear of the market and fear of losing profits, etc. This kind of human weakness makes people still buy even in the face of a market that has risen very high, regardless of the fact that the market is becoming increasingly fragile. When the market falls sharply, they are afraid that the end of the world is coming. Selling in large quantities for fear that they will not be able to escape.
The way to control human weaknesses is to cultivate your character. Among them, reading is a means. Reading is mainly about learning lessons from previous experiences and getting warnings about what you cannot do and what you should be careful not to commit. The main method is
continuous self-reflection in practice, and often reflect on whether there is something wrong with yourself mentally and what you have done wrong. In this way, the negative effects of human weakness can be controlled.